08/21/2012

Samsung vs. Apple: An Opening for Intel?

The on-going patent infringement case between Samsung and
Apple is full of classic corporate legal drama: two behemoth companies facing
off, hordes of attorneys filing tons of paper work to back their claim to
mobile dominance, and a feisty judge who asked one lawyer if he was on crack.
But all the courtroom episodes aside, it is in fact a very interesting case
that could have repercussions in the mobile sphere for years to come. For those
few of you who might not know, the case involves Apple suing Samsung for
supposedly infringing on Apple’s mobile technology (iPhone, iPad) designs and
Samsung counter-suing for Apple supposedly stealing Samsung’s technology. The
case most likely will not necessarily make or break either company’s mobile
strategy: Samsung is moving ahead full-steam with its $4 billion chip plant in
Austin, Texas.

But, it does potentially give the winner a critical leg-up
in the overall mobile contest. If Samsung loses, they will have to go back to
the drawing board and re-design their Galaxy smartphones and tablets to
differentiate themselves from the Apple products. While financially this is
negative for Samsung in the short term, with regards to forcing creativity and
diversity in smartphone design, it is actually potentially really exciting.
Rather than be bombarded with a host of Galaxy devices (maybe they can invent a
new product name too…I can’t keep all these Galaxy devices straight), we might see
something completely new and different. The old adage, need is the mother of
invention, will surely come to bear on the backs of Samsung’s designers and
developers and drive them in new directions.

Samsung’s future design challenges and potential inventions aside,
what impact could this have on the mobile embedded processor market? On the
obvious side, it potentially limits Samsung’s processors from reaching the
market due to the court ordered ban on sale of certain Galaxy products in the
US. More broadly, it also potentially limits Samsung’s appeal as an ecosystem
partner. Unless the company can quickly create or has already created
smartphone and tablet designs that are easily distinguished from the iPhone and
iPad, its partners may find that Samsung’s products are risky ventures.
However, this is probably unlikely since these partners probably need Samsung
as much as Samsung needs them. A more interesting angle is whether any delay in
Samsung’s products to market might create a window for Intel to enter the
mobile consumer market. While it has currently limited its moves to the
European and Asian markets, there is no doubt that Intel must eventually enter the
American mobile market to make a name for itself. No doubt, part of Intel’s
strategy is to work out any issues in overseas markets where media attention is
potentially less glaring, then come to market in the US where the big boys
continue to play. VDC estimates that these issues with Apple could give Intel
about a year or two to attack the US market before Samsung comes back in full
force. Not much time really!

For more on mobile technology trends, VDC’s upcoming Track 2, Volume 3: Mobile Processors &
SoCs delves into a number of mobile trends across a range of vertical
markets, geographies, and processors architectures. This volume will available
by August 31st.